Portugal defender Joao Cancelo has been ruled out of Euro 2020 after testing positive for COVID-19 and will be replaced by Diogo Dalot ahead of their tournament opener against Hungary on Tuesday, the European champions said.

The versatile Manchester City player tested positive for the novel coronavirus on Saturday and is "doing well" after being placed in isolation, the team added.

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"In accordance with the COVID-19 protocol defined by UEFA before the Euro 2020 matches, all players and members of the entourage underwent RT-PCR tests on Saturday," Portugal said in a statement on Sunday.

"The results, with the exception of Cancelo, were negative."

Portugal under-21 international Dalot, who plays for Italian Serie A side AC Milan, will join the team's delegation in Budapest to prepare for his debut at Euro 2020.

Dalot had been part of the side which reached the Euro U21 final earlier this summer, losing to Germany on June 6. Dalot played every match.